Qantas’ plans to launch a Singapore-based subsidiary, which is expected to target premium travel markets, is likely to depend upon the Australia allowing Singapore Airlines to launch trans-Pacific services, according to the CEO of long-haul low-cost carrierAirAsia X Azran Osman-Rani (Sydney Morning Herald, 20-Jul-2011). Mr Osman-Rani said Australia must further liberalise trans-Pacific routes, which were Qantas’ one-time most lucrative, before Singapore authorities allow Qantas to set up a premium airline in the city state. Singapore is likely to leverage Jetstar and Qantas’ strong bases in Singapore as grounds for its moves into Australia. Mr Osman-Rani said the world's fastest-growing aviation market presented large opportunities for premium airlines such as Qantas. Qantas will announce its firm plans, expected to contain a “four-pronged strategy”, at a press conference on 24-Aug-2011.

AirAsia X: ''It would seem difficult, from a regulatory point of view, to hold back Singapore Airlines from flying on the trans-Pacific and at the same time for the Singapore government to allow Qantas to base themselves out of Singapore,'' Azran Osman-Rani, CEO. Source: Sydney Morning Herald, 20-Jul-2011.

AirAsia X: ''When you look at the significant under penetration of international aviation [and] the growth of the markets here [in Asia], there is a lot of upside,'' Azran Osman-Rani, CEO. Source: Sydney Morning Herald, 20-Jul-2011.

You may also be interested in the following articles...

Singapore Airlines (SIA) will launch services from Jakarta to Sydney in Nov-2016, resulting in new competition for rivals Garuda Indonesia and Australia’s Qantas Airways. SIA’s entrance on the Jakarta-Sydney route is a strategic move and highlights its desire to pursue new areas of growth.

The Indonesia-Australia market is a logical market for SIA as it seeks to diversify its business. Indonesia and Australia are already SIA’s two largest international markets and Garuda and Qantas are already among its biggest competitors.

Competition within Asia Pacific, including the Southeast Asia-Australia market, has been intensifying. In the current highly competitive and challenging environment airlines are constantly jockeying and exploring new options to improve their position.

As airlines have embraced dual brand strategies to reach full service and low cost growth aviation IT has responded, as seen with Amadeus' acquisition of Navitaire, which mostly but not exclusively powered the passenger service systems (PSS) of LCCs. In the first six months since the deal closed Navitaire has added 230m passengers boarded, to Amadeus Altea's 393m. Navitaire passengers account for 37% of Amadeus' total.

Having significantly grown its market share, and with past LCC product forays not having worked out, Amadeus receives a new business stream. Some Navitaire customers (Ryanair, AirAsia, IndiGo) are larger than Altea customers and have high growth ahead of them. A second benefit is the Navitaire acquisition supporting Altea customers. By owning both products Amadeus can improve connectivity between Altea and Navitaire airlines. Most of Altea's large customers – Lufthansa, IAG, AF-KLM, Qantas and JAL – have an LCC operating Navitaire software. Of Navitaire's passengers – 35% are on airlines that are LCC units of full service airlines. Other airlines may be holding out on pursuing partnerships and connectivity until there is a cheaper, simpler and streamlined way.

It may seem that the Amadeus-Navitaire marriage is about full service and low cost segments, but its greatest strength is the role it will have in the hybrid segment. Hybridity is growing, and Amadeus-Navitaire could galvanise further expansion.